Russia: Grain Production Improved By Corn Boom, Fertilizers

Date:05-08-2008

Russia's grain production forecast has been raised to 84.67 million metric tons (MMT) thanks to a 200,000 MT increase in corn production, while forecasts for wheat (51.2 MMT) and barley (17.7 MMT) remain stable.

The US Dept. of Agriculture's Foreign Agriculture Service (USDA-FAS) reports that the formation of a grain futures trade has helped producers form price targets, although at present, trading volumes are too small to influence Russia grain marketing system.

As of the end of April, spring grain crops were sown on 18.4 million hectares (Ha), or a 27.1% increase over the same time last year. Corn planned for grain was sown on 694,000 Ha, compared to 432,000 Ha for 2007. Fertilizer was applied on 12.1 million Ha, or 76.2% of the winter grain area sown in Russia, up 5 million Ha from last year. This includes 5.6 million Ha in the Southern Federal District, which is 1.3 million Ha greater than the same date in 2007. In the Volga Valley Federal District, 2.4 million Ha was fertilized, and in the Central Federal District, 3.1 million Ha wasfertilized, or nearly 1 million Ha more than in 2007.

The Ministry of Agriculture reports that, as of April 25, agricultural enterprises acquired 1.13 MMT of mineral fertilizer, including 818,000 MT of nitrogen fertilizer, which is 413,000 tons more than in 2007.